Energy Bills Close Businesses—The Latest Shockwave
In the past four months, energy providers have shut down 20 businesses over unpaid power bills—an eye‑watering 186% jump from the seven that went the same way last year. The trend is like a bad landlord that refuses to let you rent a new place when your credit score dips.
How it Works
When a company is owed cash by a customer, the creditor can file a “winding up petition.” This sparks a legal exodus that forces the debtor to liquidate—so the creditor can dig into whatever is left.
What’s Driving the Spike?
- Energy contracts ran out – businesses had to jump into new, pricier deals.
- Government support capped only at double the 2021 average, still leaving a massive hole in the budget.
- Heavy energy users—chefs, food factories, chemistry labs, the hospitality chain, and even some care homes—are feeling the pinch most.
- Small shops, with no bargaining power for cheaper rates, are caught in the bad block.
Why Owners Aren’t Getting a Timeout
Energy suppliers are kept stone‑cold on forgiving debts. They can swap a bankrupt client for a new one as fast as you can say “cash‑less” and the threshold to shut down a company is a mere £750—vs. £5,000 for a private individual. So the scale tipping point is far lower for businesses.
Expert Take
Michael Pallott, partner at Mazars, explains: “Small and even some big firms across Britain are bracing for a brutal winter. These closures are just the tip of a tsunami that’s already making waves.” He adds, “As the economy slows and costs climb, we’ll see a lot more closures in the coming months.”
So, if you own a company feeling the strain, time might be running out. Hack the situation—seek lower rates, negotiate payment plans, or consider an emergency reserve. The clock’s ticking, and those who ignore the warning are likely to find their doors—both literal and financial—shutting forever.
